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Tag: earnings

The Earnings Enigma

  • Markets
  • Charlie Bilello

Over half of companies in the S&P 500 have now reported earnings and we’re observing a familiar theme. For the fourth consecutive quarter, earnings have declined on a year-over-basis. On the revenue front, growth has turned negative for the third consecutive quarter. The Enigma If earnings and revenues are supposed to drive stock prices, how […]

The Revenue Recession

  • Markets
  • Charlie Bilello

What do General Motors, JPMorgan Chase, Microsoft, IBM, Proctor & Gamble, Citigroup, Johnson & Johnson, Coca-Cola, Oracle, and Caterpillar all have in common? 1) They are among a long list of S&P 500 companies with negative year-over-year revenue growth. 2) They are not in the Energy sector. With 80% of companies already reported, S&P 500 […]

“The stock market is a voting machine rather than a weighing machine. It responds to factual data not directly, but only as they affect the decisions of buyers and sellers.”- Graham and Dodd, Security Analysis Earnings drive stock prices, so says investing lore. As earnings rise, stock prices move higher. As earnings fall, stock prices […]